Extortion probe of gossip reporter / N.Y. Post suspends part-timer for its popular Page Six

Campbell Robertson, William K. Rashbaum, Allison Hope Weiner, New York Times

Published 4:00 am, Saturday, April 8, 2006

2006-04-08 04:00:00 PDT New York -- The New York Post is cooperating with federal authorities in an investigation into whether a part-time contributor to its Page Six gossip column -- the avidly read daily log of wrongdoing, double-dealing and sexual indiscretions by celebrities both minor and major -- tried to extort money from a Southern California billionaire, according to a spokesman for the newspaper.

Associates of the billionaire, Ron Burkle, said the reporter, Jared Paul Stern, was captured on a recording demanding a $100,000 payment and a monthly stipend of $10,000 in return for keeping negative information out of the paper. Stern was suspended Thursday pending the outcome of the investigation and could be dismissed, according to Howard Rubenstein, the spokesman.

But while the accusations against Stern are serious, it is the specter -- raised by at least three people who said they knew what was on the tapes -- that Stern implicated several celebrities and New York power figures in a undisclosed, symbiotic relationship with Page Six that prompted an extraordinary day of full-throated and at times gleeful gossip among those who love, hate and avidly read the column.

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Those who said they knew what was on the tape said Stern named Harvey Weinstein, the co-founder of Miramax films, and Ronald Perelman, the chairman of Revlon Inc., as being among those who have had their coverage on the page finessed. Through a spokesman, Weinstein flatly denied any improper relationship with the column and its main editor, Richard Johnson.

Perelman's company once hired Johnson's fiancee, Sessa von Richthofen, whom he is marrying today, as an administrative assistant. The executive who hired her said Friday she had not been pressured into hiring her.

Stern never asserts that money was used for preferential coverage. Rubenstein, who said that lawyers for the newspaper were reviewing Stern's past work, added that the authorities had not asked for information concerning any other reporters for the gossip column. He said the paper was preserving Stern's computer records and other material for the authorities to review.

One federal law enforcement official said that the investigation is in its early stages and that it is unclear if any charges will be brought against Stern.

The writer's lawyer, Edward Hayes, defended Stern, who also has edited a new Page Six magazine for the Post.

"Jared did not and could not guarantee him good coverage or protect him from bad coverage," Hayes said of Stern's dealings with Burkle. "Jared made a mistake. He's sorry if it embarrassed the Post, and nothing actually happened, and hopefully it will be over and done with."

The accounts of Burkle's dealings with Stern and the Post are based on interviews with several associates of Burkle's, as well as another person who said he knows what is on the tapes. They all refused to be named because of the federal investigation.

One associate of Burkle's said Page Six items about the billionaire began appearing that Burkle thought were inaccurate. The associate said Burkle protested to editors, including Johnson. Colin Myler, the Post's managing editor, wrote back and promised to correct any errors that Burkle could point out, the associate said.

Burkle even wrote a letter of complaint to Rupert Murdoch, the media tycoon whose News Corp. owns the Post. A copy of the letter to Murdoch which was obtained by the New York Times.

Burkle had his lawyer, Martin Singer, fire off several letters threatening litigation, according to several people with knowledge of the correspondence.

On March 14, the associate said, an employee of Burkle's received an e-mail message from Stern, a contributor who worked two days a week for Page Six, suggesting Burkle had "the means" to change the treatment he was getting from the column.

Burkle, the associate said, suspected he was being extorted. "Once Ron realized it was an extortion plot, he reached out to his attorney, who then reached out to law enforcement," the associate said.

According to numerous people involved in the episode, Stern agreed to meet Burkle several times at Burkle's loft in downtown Manhattan beginning on March 22. Burkle's security team, aided by a New York City private investigations firm, recorded the meetings, according a person who was briefed on the sessions and was granted anonymity because the investigation is ongoing. The recordings were turned over to the federal authorities.

In their meetings, Stern described three levels of "protection" he could offer to Burkle, according to those with knowledge of what is captured on the tapes.

When Burkle pressed Stern to explain how this would work, Stern at first cited a few examples involving his boss, Johnson. He said, for example, that Johnson had a "script deal" with Weinstein -- something the movie executive denied Friday.

Johnson, who is in Florida for his wedding, referred calls to his spokesman, Rubenstein.

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